The Iranian Regime's Unemployment Policy

Unemployment has become one of the central issues confronting Iranian workers and toilers in the past year. In pursuit of establishing a modern capitalist regime that is acceptable to the West, the capitalist government has - under the pretext of "economic adjustment" - stepped up its attack on workers by sacking them. The closure of factories, the threat of closure and the sacking of workers on a large scale is on the current agenda of the regime's leaders. The regime's "adjustment of human resources" proposals have lead to the sacking of thousands of workers in the past few months. These sackings, and the many more that have been threatened, clearly illustrate the regime's policies.

What are the reasons behind the regime's latest policies?

Firstly, under the pretext of "economic adjustment", the Rafsanjani clique has taken the initial steps towards establishing a modern capitalist system as part of the plan of integrating Iranian capitalism in the world market. Contact with large international banks and the borrowing of enormous sums from them, wooing foreign and Iranian capitalists to the Iranian market and providing certain facilities for them, and so on are the initial steps towards realising this policy. The new majority in the fourth Majles (parliament), and more recently, a well-knit Cabinet favourable to his clique, will help Rafsanjani to continue the policy of "economic adjustment" with more vigour. To create a convenient situation for investment and profit-taking, the first and central measures of the Rafsanjani clique will obviously be to intensify the exploitation of workers.

This is because setting the wheels of Iranian capitalism in motion is not a matter that can be achieved with ease. The return of exiled capitalists and establishing security (economic and political) for foreign capitalists, curbing runaway inflation, reducing poverty and destitution, dealing with the black market and the loss of the rial's value in the international money markets, and problems due to the unifying of the exchange rate, are all symptoms of a crisis that will have a stranglehold on the regime. The regime's economic crisis - like that of all capitalist systems, especially those of "Third World" countries - is not only a permanent and structural one, but the effects of the eight-year war with Iraq, the bungling and wastage of the regime's leaders, the clashes of the ruling clique's internal factions and so on, add to the intensity of the crisis and make a recovery more difficult and remote.

Therefore, to make up for problems due to the economic crisis, the Rafsanjani clique has directed its initial attack at the workers and toilers - the capitalists, whether pro- or anti-regime, have never been under financial pressure in the past 14 years. The policies of the past year have also been directed at reducing real wages and increasing the duration and intensity of labour. This is coupled with the rationalisation of production - i.e., the closure of unprofitable factories and laying off workers. From the regime's point of view, the more unprofitable (or low profit) factories are eliminated, and the more emphasis is put on the most profitable and essential needs of the market, the situation will improve. The absence of unemployment benefit means that the sacking of workers will not be too costly - these workers will join the rest of the urban poor!

Secondly, the integration of Iran in the world market requires competition between Iranian and foreign capitalists - and this means the selling of commodities at competitive prices on the world market. Therefore, it is obvious that the costs of production must be lower than before. The reduction of production costs in the context of Iran, which does not have the latest technology (and will never have under capitalism), can only mean the sacking of workers and closing down less profitable plants. Under the guise of "adjustment of human resources" (compulsory redundancy or "compulsory re-arrangement of labour power") the regime's officials try to justify these policies.

Thirdly, for the super-exploitation of workers in Iran, the Rafsanjani regime needs a reserve army of labour. Large numbers of unemployed people make the implementation of the regime's inhuman policies possible. Encouraging competition between workers (between skilled and unskilled, young and old, male and female, handicapped and able-bodied, "committed" to Islam and non-"committed", etc.), is one of the methods the regime (or any other capitalist state) uses for advancing its policies. So long as there is an absence of workers' struggles - the existence of a reserve army of labour, repression, the anti-worker Labour Legislation - will help the regime advance its policies.

Fourthly, the international banks, financial institutions and those making huge loans will always want to impose their policies on debtor countries. It is obvious that from their point of view, loans and credits can only be given to countries with a "safe", "quiet" and high earning climate. Any internal turmoil and anarchy due to the internal differences of the ruling clique, or the riots and protests of toilers, will make the foreign bankers and capitalists very anxious. In their contacts with the Rafsanjani regime, they have brought pressure in favour of creating a "healthy" climate for high productivity and rich pickings for capitalists. They approved of the closure of unprofitable factories and laying off workers and the new emphasis and concentration on profitable production.

What are the demands of the workers in the present situation?

1- Opposition to redundancies: The regime's propaganda about the shortage of work is a complete lie. There is enough work in society for all those who are willing and able to work. Under no circumstances should workers be sacked. If the capitalist regime cannot keep all the labour power in factories, instead of sacking workers it must divide the work available between workers - without a cut in pay. Either the reduction of the working day, or an overtime ban, can stop the plans for redundancies. The regime's refusal to accept such a condition does not in any way mean that there is a "shortage of work" - the reasons for the latest wave of unemployment in Iran lie elsewhere.

2- The struggle for unemployment benefit: Since the regime's leaders are unable to provide work for all those who seek it, it is the duty of the state to provide for their basic subsistence. In place of advancing large loans to the middlemen and capitalists of the private sector, the regime must pay comprehensive unemployment benefit to all those out of work. The "unemployment benefit" put forward by the state will not solve any problem. Firstly, this "benefit" covers only a small percentage of workers, and secondly, it is only paid for a short time. Unemployment benefit must be paid to all workers until they return to work. Unemployment is not caused by workers but the capitalist system itself - and the capitalist state must compensate them for it.

3- The struggle for pay rises in line with inflation: The workers always struggle for a minimum wage that is in line with inflation - and will continue to do so. Today in Iran's cities the minimum wage necessary for a decent living is three times that set by the state. It is obvious that workers' pay must increase and every month should be reviewed and adjusted according to the rate of inflation. The regime will attempt to reduce wages or keep them stationary through the latest wave of redundancies. The repression and intimidation of workers can be made ineffective by the struggle for a sliding scale of wages.

The workers' struggles in the recent past appear to have forced the "Supreme Council of Labour" to accept wage rises in line with inflation. But it is the state who sets the rate of inflation - and always under-estimates it. To monitor the rate of inflation a national commission of workers' representatives must be elected. Only such a body is capable of assessing the rate of inflation and not the lying "economists" of the regime.

4- The struggle to abolish taxation: All workers must be exempt from paying taxes. The indirect taxation of food must be abolished. Instead of taxing workers and toilers, the state must impose progressive taxes on large companies, bazaari merchants and through a rational use of the oil resources, embark on social welfare and service programmes. The workers and toilers of Iran need housing, hospitals, schools, libraries, parks, universities, nurseries and other services. The available housing stock must be at the service of all workers and no priority should be given to Hezbollahi families.

5- The struggle for the unity of workers: The secret of the workers' victory over unemployment is to combat the regime's divisive policies. The employed workers - both permanent and those on short-term contracts - and the unemployed, women and men, young and old, skilled and unskilled, must join hands and confront the regime's policies. If the regime uses employed workers to successfully deal with sacked workers, it will target the employed next time. United action of the workers against the state officials is vital.

The successful struggle for the above demands needs workers' political organisations. In Iran's present repressive political situation, the forming of workers' organisations through workers' clandestine committees, and at their centre, workers' socialist cells, is on the agenda.

M. Razi

22 August 1993 - Paris.

(Translation of the Editorial of WSN No 17)